2•The PANDORA story 2014
PANDORAANNUAL REPORT2014
A PROSPEROUS YEAR
We have had a prosperous year, allowing us once again
to celebrate strong top-line performance and increased
profitability. 2014 delivered remarkable growth for
PANDORAboth in terms of geographical areas and
products andwith the opening of concept store number
1,400we now havemore branded stores in our network
than ever before.
In 2014, PANDORAmoved into seven newmarkets,
and expanded further in existingmarkets. In ourmore
developedmarkets, theUS, theUK, Germany andAustralia,
we opened 96 concept stores, while our existing concept
stores in these countries delivered increasing sales-out
in all four quarters of the year, comparedwith the same
quarters in 2013.Most of ourmarkets saw the same
trend – an increase in the number of concept stores and
positive developments in existing stores. In linewith our
aim to expand PANDORA’s online sales, we continued
our eSTORE expansion in 2014, with the establishment
of PANDORA-owned eSTOREs in France, Italy, the
Netherlands and Poland.We now have our own eSTOREs
in a total of seven European countries.
With growth of more than 25% in revenue from charms
and charm bracelets in 2014, both theMoments collection
and the PANDORA ESSENCECOLLECTION continue to
be as successful as ever. Also, our second core category,
Rings, had a tremendous year.The focused effort on
growing this category resulted in revenue fromRings of
more thanDKK 1billion, which represents 10%of full-year
revenue comparedwith only 6% in 2013. During the year,
we entered into a strategic alliancewithTheWalt Disney
Company that resulted in the launch of 41Disney-inspired
charms in theUS inNovember.The charms have been very
well receivedby consumers.
We continued to expand our branded network in 2014.
Ourmain focus is to increase our share of revenue from
concept stores, inwhichwe offer our customers the best
possible branded experience. During the year we opened
310new concept stores, taking the total to1,410 and
revenue from the store type increasedby approximately
50% comparedwith last year. 56% of our revenue is
now generated in concept stores comparedwith49% last
year.The total number of stores actually decreased during
the year, but the number of branded PANDORA stores
increasedby 564, while the number of PANDORA-owned
stores also increased during the year.
We operate a strong franchiseemodel, but also operates
owned and operated branded stores in selectedmarkets
whendeemed beneficial. Examples of this in2014 include
the acquisitionof net 22PANDORA stores in theUS, the
forward integration of our operations in Japan, beginning
in January 2015 and taking over up to78 commercial
store leases in prime locations inGermany, whichwewill
convert intoPANDORA-owned concept stores in 2015.
We owe a substantial part of our success toour crafting
facilities inThailand. In2014, we produced around 91
millionpieces of jewellery and in the processwe hired
more than 3,100new employees, bringing the total to
11,400, of whom approximately 7,900 are located at
our facilities inThailand. In 2015, we plan to expand
productionby at least one new facility to cater for future
demand.
Here on the threshold of an exciting 2015, we extend
a hearty ‘thank you’ to our people for their efforts and hard
work in the past year –without their dedicated and strong
performancewewould not have been able to achieve
these results. Onbehalf of PANDORA’s Board of Directors,
ExecutiveManagement and employees, wewould also
like to sincerely thank all our customers aswell as our
shareholders for the interest and trust they have shown in
our company throughout 2014.
PederTuborgh
Allan Leighton
Chairman
Chief ExecutiveOfficer
